An ongoing
challenge for many spa and pool dealers is the drop off in business during
the winter months. This is a particularly difficult issue for pool builders
who employ valuable skilled workers that are at risk of moving to other jobs
to enjoy a more consistent and predictable income.

This makes the
"winter months challenge" even more difficult because not only do pool
builders experience a loss in revenue, but they also risk loosing skilled
workers who are the backbone of their pool construction business. Many of
the pool builders I speak with tell me that they're frustrated with their
inability to grow their business, simply because they don't have enough
skilled labour and the thought of losing their employees during the winter
months troubles them.

Does that scenario
sound familiar?

It did for Charles
Lindsey, owner of Lindsey's Spa and Pool in Arkansas, USA. Lindsey
comments, "During the winter months we would experience a drop in sales and
so to hold on to our good people we started building storage sheds. Although
the slowdown in revenue was a concern, we started the building business more
to be able to protect our talented employees from finding other work."

In the beginning
he used his pool construction employees who had some carpentry experience to
start building storage sheds, which he sold and offered on a rent-to-own
basis. His business picked up and he expanded his services to building
shops, barns, and modular office spaces, in addition to applying vinyl
siding and custom paint jobs.

Lindsey has now
turned the part-time building business into a full time company producing
revenues that help to offset the decline in winter pool construction
business. In the wintertime, there is still a small demand for pool
services, so cross-trained employees are shared between the building
business and the pool business allowing Lindsey Spas and Pools to not only
maintain their revenues but also keep their talented employees.

Four
Steps To Consider When Starting A Second Business

Starting a second
line of business can be tricky. Running one business is tough enough but
opening a second business can present a new set of conflicting priorities
and strategies. The advantage you have is that you've been there before. You
are already familiar with many of the challenges that come with starting a
new business. Many of the issues you'll face while opening the new business,
will be the same issues you've already tackled.

Perhaps the
biggest decision in starting a second line of business is what type of
business to start. Consider these steps when thinking about your new line of
business.

Step 1 -
Identify the expertise that you already have in your spa and pool business.
Either you or your key employees may have previous experience in other lines
of business. Charles Lindsey noticed that he and his employees had extensive
skills in the construction industry, which provided a foundation for his
building business.

Step 2 –
Survey your current spa and pool customers to determine what needs they may
have that you can offer during the off season months. Look around their
homes and make a list of potential services you might be able to provide
using your skills.

For instance, home
improvement services, fence and gate construction services, heating system
maintenance services, general contracting services, plumbing services, snow
removal services, and landscaping are all services that share the same
skills that pool builders have. These services would be likely candidates to
leverage into a side business that would help offset the loss in revenue
during the winter months.

Don't forget to
look past the obvious for additional possible products or services you might
be able to offer. Try thinking about potential services that you could
leverage at your facilities such as indoor swimming lessons, lifeguard and
CPR training, scuba diving lessons, and even kayaking and canoeing lessons.

Step 3 –
Create a plan for your new business that includes the four critical areas of
financing, people, product, and marketing. These are the four cornerstones
of any good business plan. They include the vital four questions you must
ask yourself when starting any business, whether it's a side business or
your main business.

These questions
are:

1. How will we
finance the business?

2. How will I
hire, maintain, and manage qualified employees?

3. What will my
product or service look like and how will it be different?

4. How will I
market my new product or service?

Your business plan
is a good place to test your assumptions. For instance, assume you are
thinking of starting a heating system maintenance service because you
believe that the skills you've acquired working on pool and spa heating
systems will transfer easily to home heating systems.

During the
business planning phase is when you would investigate and learn more about
the requirements to become home heating maintenance certified and if, in
fact, those skills do transfer easily. You may find out that they are two
different animals and that the barrier to entry is too high.

Step 4 –
Start marketing your services early in the season to your current spa and
pool customers. What better group of people to market your new products and
services to than to those whom you already have a business relationship with
and who know and trust you.

Review your
customer database and pull out all your customers with whom you have done
multiple transactions. These are the customers that have demonstrated their
loyalty to you and your business and are the most likely people to buy from
you again.

Donald Johnson,
owner of Tri-State Window and Pool in Iowa, USA provides a number of home
improvement services, in addition to, selling spas and installing pools such
as installing replacement windows, seamless gutters, home siding, roofing
and also general home repair.

According to
Johnson, "The key to running a successful diversified business is to make
sure that your employees are cross-trained and versatile in performing your
different services." When scheduling jobs try to match your untrained
employees with experienced crew members in order to get your employees up to
speed in each of the service areas you offer.

Speaking of
scheduling, Johnson adds, "Scheduling is an important issue both for your
employees and your customers. Your crew members need to be flexible. One day
they might be installing storm windows and doors and the next day they might
be called upon to install an inground pool. To be honest, our employees find
the diversity in jobs refreshing. Also you need to learn to be very
diplomatic with your customers when scheduling jobs. Because you can't start
every job immediately, you'll need to persuade your customers to work with
you when scheduling the job to be completed."

Marketing your
additional lines of service is also a vital step in building a successful
diversified spa and pool business. Many spa and pool dealers who sell
multiple services send a "We do it all" message and attempt to market all
their services in one advertisement. This is confusing to the customer.
Today, when consumers buy services they want specialists or businesses that
have specific expertise in doing that one thing.

When advertising
your new line of products and services, confine your advertisement to just
one product or service. Although this may cost more, your ad will be far
more effective. Once your prospect comes to your store, you'll have an
opportunity to cross-sell them on other products and services you provide.

Conclusion

Beginning a second
line of business to offset the winter month's slowdown is a smart move. Not
only does it offset lagging income from slow months, but it allows you to
maintain key employees and diversify your business income. By matching the
skills and talents of your business to your customers' needs or wants,
you'll be able to find the right product or service to pursue.